Este9e Lauder (NYSE: EL) outlines $1,137 million approved charges under expanded restructuring plan

Rhea-AI Filing Summary

The Estée Lauder Companies Inc. is expanding its multi‑year Profit Recovery and Growth Plan and related restructuring program. The company now expects total restructuring and other charges of between $1,200 million and $1,600 million (before tax) as it reorganizes operations, simplifies processes, outsources selected services and adjusts its go‑to‑market footprint through fiscal 2027.

Through November 29, 2025, initiatives approved under the restructuring program are expected to result in cumulative restructuring and other charges of about $1,137 million (before tax). Of this, restructuring charges total $781 million, including $674 million of employee‑related costs, $53 million of asset‑related costs, $26 million of contract terminations and $28 million of other exit costs. Most charges, other than non‑cash items, are expected to result in future cash expenditures funded from cash provided by operations.

Insights

Equity research analyst

Estée Lauder quantifies sizable multi‑year restructuring charges tied to its margin recovery plan.

Estée Lauder outlines a broad restructuring program under its Profit Recovery and Growth Plan, with expected total restructuring and other charges between $1,200 million and $1,600 million before tax. The scope spans reorganization and rightsizing, process simplification, expanded outsourcing and changes to its go‑to‑market footprint, with initiatives expected to be approved by the end of fiscal 2026 and substantially completed by the end of fiscal 2027.

Cumulative initiatives approved through November 29, 2025 are expected to generate about $1,137 million in restructuring and other charges, indicating that a large portion of the anticipated program is already defined. Within this, restructuring charges of $781 million are heavily weighted to employee‑related costs of $674 million, plus asset‑related, contract termination and other exit costs, highlighting the program’s focus on workforce and footprint changes.

The company states that, apart from non‑cash items, these charges are expected to lead to future cash outflows funded by operating cash flow, so near‑term earnings and cash generation may reflect these implementation costs. Management indicates it will provide further disclosures as additional initiatives are approved and cost ranges by type can be estimated, so subsequent periodic reports and updates on the restructuring program will frame how quickly these actions progress within the fiscal 2025–2027 window.

0001001250trueAmendment No. 400010012502024-02-012024-02-01

 UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________

FORM 8-K/A

Amendment No. 4

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

February 1, 2024

The Estée Lauder Companies Inc.

(Exact name of registrant as specified in its charter)

Delaware

1-14064

11-2408943

(State or other jurisdiction of incorporation)

(Commission File Number)

(IRS Employer Identification No.)

767 Fifth Avenue, New York, New York

10153

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code

212-572-4200

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Class A Common Stock, $.01 par value			EL			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05 Costs Associated with Exit or Disposal Activities.

As announced on November 1, 2023, The Estée Lauder Companies Inc. (the "Company") launched the Profit Recovery and Growth Plan ("PRGP") to help progressively rebuild its profit margins in fiscal years 2025 and 2026.

As a component of the PRGP, on February 5, 2024, the Company announced a two-year restructuring program and filed a Current Report on Form 8-K. The Company committed to this course of action on February 1, 2024.

At that time, the restructuring program was expected to result in restructuring and other charges totaling between $500 million and $700 million (before tax), and the Company was unable to make a determination of the estimated amount or range of amounts to be incurred by major cost type and future cash expenditures pursuant to the restructuring program.

After reviewing additional potential initiatives and the progress of previously approved initiatives, on February 3, 2025, the Company committed to the expansion of the PRGP, including an expansion of the restructuring program and filed a Current Report on Form 8-K on February 4, 2025.

The expanded component of the restructuring program began during the Company’s fiscal 2025 third quarter. The focus of the overall expanded restructuring program (collectively the “Restructuring Program”) includes (i) reorganization and rightsizing of certain areas, (ii) simplification and acceleration of processes, (iii) outsourcing of select services and (iv) evolution of go-to-market footprint and selling models. Cumulative initiatives under the Restructuring Program are expected to be approved by the end of fiscal 2026 and substantially completed by the end of fiscal 2027.

The Restructuring Program includes a number of initiatives, and the Company estimates that restructuring and other charges to implement those initiatives are expected to total between $1,200 million and $1,600 million (before tax). At the time the Company filed the Current Report on Form 8-K on February 4, 2025, the Company was unable to make a determination of the estimated amount or range of amounts to be incurred by major cost type and future cash expenditures pursuant to the Restructuring Program.

Since the initial Current Report on Form 8-K filed on February 5, 2024, the Company has disclosed information about specific initiatives approved under the Restructuring Program, including most recently in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 filed on October 30, 2025, which provided information about specific initiatives approved cumulatively through October 26, 2025. The Company is filing this Form 8-K/A to provide details about specific initiatives approved since that date.

Subsequent to October 26, 2025, the Company approved initiatives under the Restructuring Program to drive future sales growth and productivity to rebuild gross and operating margin profitability, primarily relating to the following:

•Enterprise Business Services – The Company approved an initiative to transform its global operating model through the (i) consolidation of certain service providers, (ii) expansion of outsourced services, and (iii) redesign and standardization of the related end-to-end business processes, leveraging advanced technology to improve productivity. These actions will primarily result in other charges, including professional services related to the design, implementation and execution of the initiative. These charges include transition and transformation support, process design, and costs to support the global project management office for this initiative. These actions will also result in employee severance through a net reduction in workforce and contract termination charges.

Once the relevant accounting criteria have been met, the Company expects to record cumulative restructuring and other charges of approximately $1,137 million (before tax) in connection with initiatives approved since inception of the Restructuring Program through November 29, 2025, which other than the non-cash charges, are expected to result in future cash expenditures funded from cash provided by operations.

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Of the $1,200 million to $1,600 million restructuring and other charges expected to be incurred in connection with the Restructuring Program, total cumulative charges approved by the Company through November 29, 2025 were:

						Sales Returns (included in Net Sales)						Cost of Sales						Operating Expenses												Total
(In millions)																		Restructuring Charges						Other Charges
Approval Period
Cumulative charges approved through October 26, 2025						$	4					$	10					$	683					$	155					$	852
October 27, 2025 - November 29, 2025						—						—						98						187						285
Cumulative charges approved through November 29, 2025						$	4					$	10					$	781					$	342					$	1,137

Included in the above table, cumulative restructuring charges for initiatives approved by the Company through November 29, 2025 were:

(In millions)						Employee- Related Costs						Asset- Related Costs						Contract Terminations						Other Exit Costs						Total
Approval Period
Cumulative charges approved through October 26, 2025						$	599					$	53					$	4					$	27					$	683
October 27, 2025 - November 29, 2025						75						—						22						1						98
Cumulative charges approved through November 29, 2025						$	674					$	53					$	26					$	28					$	781

The Company will continue to file additional disclosures in connection with initiatives associated with the Restructuring Program that individually or collectively are determined to be significant. Such disclosures would be filed after the Company is able to make good faith determinations of the estimated amount or range of amounts by each major type of cost and future cash expenditures relating to such initiatives.

The forward-looking statements contained herein, including those relating to our expectations regarding restructuring and other charges, involve risks and uncertainties. Factors that could cause actual results to differ materially from those forward-looking statements include current economic and other conditions in the global marketplace, actions by retailers and consumers, competition, the Company’s ability to successfully implement its long-term strategic plan and those factors described in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.						Description
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						THE ESTÉE LAUDER COMPANIES INC.
Date:			December 1, 2025			By:			/s/ Akhil Shrivastava
									Akhil Shrivastava
									Executive Vice President and Chief Financial Officer
									(Principal Financial and Accounting Officer)

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